Background
Lux Industries is a leading Indian inner wear and hosiery company with headquarters in Bengal, India. Lux manufactures briefs, boxers, tank-tops and T–shirts made out of cotton for maximum comfort and breathability. When it was established in 1957 as Biswanath Hosiery Mills , the goal was to produce comfortable inner clothing at affordable prices for the people of India. Sixtyyears later, Lux has expanded its product range to include underwear and thermal clothing for women and kids and exports itsproducts to Europe,the Middle East, and Africa.
Insight
The inner wear and hosiery industry in which Lux operates will always enjoy demand. However, it also has a range of products from competitors equally vying for the consumer’s attention. As the effectiveness of paid media advertising declines, studies have shown a converse increase in influencer marketing.
Retailers and behind the counter staff are often perceived by consumers to be more knowledgeable than they might be on products. For this reason, consumers are likely to make purchasing decisions based on recommendations of the person selling it to them. Also, client facing links of a supply chain have a stock of goodwill with the consumer.
Problem
As Lux Industries grew, they knew they would have to be proactive about protecting and increasing their share of the highly competitive market. They also knew that engagement with their supply chain was the best way to achieve this. In 1994, they had hosted a conference for distributors of Lux products to get their input regarding strategy and plans for the company; the first of its kind in their industry.
The Sproxil Solution
Sproxil designed a tiered incentive loyalty program to engage retailers over a period with the aim of increasing repeat orders from them. After researching the target group ,it was determined that cash would be the most effective incentive.
Sproxil structured the campaign such that loyal retailers of the brand could get cash rewards directly from Lux, after accruing a certain number of points. Customized labels were designed and fixed on cartons of the product.
Result
- Within two months of its launch, 5000 retailers had signed up for the campaign. By the end, this number was over 23,000, with some individual retailers having verified as much as 9000 times. Lux Industries was able to get a response rate of 60% from the retailers
- With the data collected by Sproxil’s client portal, Lux is equipped to build a comprehensive database of their retailers
- As retailers are the last stop before the consumer, the brand now has access to a vital part of the supply chain. With information about buying patterns and behavior, they can segment and run extremely targeted campaigns at their retailers to influence and further incentivize them
